Cargo Business Newswire

Thursday, June 26, 2014

2nd bridge inquiry dogs Christie administration and port authority

Investigations into the administration of New Jersey Governor Chris Christie and the Port Authority of New York and New Jersey are targeting possible securities law violations regarding a $1.8 billion road repair agreement in 2011, according to sources briefed on the issue.

Although the investigation was instigated over allegedly politically motivated lane closings at the George Washington Bridge in September 2013, the new investigations are focusing on the Pulaski Skyway, the crumbling elevated roadway connecting Newark and Jersey City.

The Manhattan district attorney and the Securities and Exchange Commission are conducting the Pulaski Skyway inquiries.

The inquiries into securities law violations focus on a period of 2010 and 2011 when Christie’s administration pressured the Port Authority to pay for significant repairs to the Skyway and related road projects, redirecting money that was to be used on a new Hudson River rail tunnel that Christie canceled in October 2010.

Port Authority lawyers had warned against the move, noting the skyway is owned and operated by the state, which puts it outside the agency’s purview, according to a long paper trail of memos and emails.

Ultimately, the Port Authority justified paying for the Skyway repairs by calling the bridge an access road to the Lincoln Tunnel, even though they are not connected. In bond documents, they called the Skyway repair one of the “Lincoln Tunnel Access Infrastructure Improvements” projects.

The inquiries could lead to criminal charges under the Martin Act, or the investigations could result in civil action under the Martin Act or by the S.E.C., under federal securities laws.

For more of the New York Times story: www.nytimes.com